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Meta considers selling off Diem assets as Zuckerberg's crypto ambitions crumble

Meta considers selling off Diem assets as Zuckerberg's crypto ambitions crumble

Facebook is reportedly mulling the sale of Diem assets as regulatory pressure mounts against Mark Zuckerberg's cryptocurrency project.

Citing anonymous source, Bloomberg reports that The Diem Association is looking at selling its assets and intellectual property as a means to return capital to investors.

Originally planned as a global private cryptocurrency, the project was scaled back following political and regulatory pressure and a new idea floated, pegging a rebranded Diem token to the US dollar.

In May, Diem said an affiliate of the firm, Silvergate Bank, would be the one to issue the Diem USD stablecoin. However, the Federal Reserve threatened to ice Silvergate, effectively dealing a final blow to Meta's ambitions.

The writing was already on the wall in December, when David Marcus quit as the boss of Meta's fintech unit after leading a frustrating effort to launch the Novi digital wallet and its associated stablecoin.

According to Bloomberg, Diem is speaking with investment bankers on a fire sale of its assets and seeking to find new homes for the engineers who developed the tech.

Update: The Wall Street Journal is reporting that Meta has agreed to sell Diem Association to Silvergate for a price of $200 million.

Comments: (1)

Ketharaman Swaminathan
Ketharaman Swaminathan - GTM360 Marketing Solutions - Pune 27 January, 2022, 11:18Be the first to give this comment the thumbs up 0 likes

Yet another fintech initiative for which middleground between Leveraging Regulatory Gap and Waiting for Godot has not worked.

Fintechs Need Guts More Than Lawyers